Your employees’ “hidden” paycheck

You know that benefits account for 20 to 40 percent of your payroll budget. But do your employees know the full value of their benefits?

Preparing an annual benefits report for your employees may increase your staff’s awareness and appreciation for their total compensation. An employee’s W-2 will provide base compensation information. Be sure to include both the employee’s portion of wages contributed to government-mandated benefits, such as unemployment insurance, workers’ compensation and FICA and the value of the employer-mandated portion.

Vacation, personal and sick leave add dollars to an employee’s bottom line. Multiply the hourly/daily rate for each employee by the number of hours/days they are entitled for the total value. Contributions to insurance premiums, disability and pension plans should also be noted. List educational benefits, such as tuition reimbursement, continuing education seminar fees, GCSAA national and local chapter dues and subscriptions paid. Other fringe benefits such as uniforms, meals and golfing privileges also add to an employee’s total compensation package. Also detail non-financial benefits, such as direct deposit, parking, employee parties, etc.